Page 149 - 158Hannah and Chelsey

Television, Broadcasters

and British Film

Incentivising and

rewarding writers,

directors and producers

*Even when significant revenues are generated by their films, very little can flow back to the filmmakers.

PEOPLE WHO WORK IN FILM

*Too often, talent (film-makers) seeks work abroad or has to fall back on opportunities outside film to survive. This is a weak foundation for building a creative career and it means that audiences are deprived of the contribution that such talents can make to British films.*The high risks and opportunity

costs of film careers mean it is vital that creative talent is able to benefit from success in order for it to survive and continue.

THE AIMS OF THE FILM INDUSTRY*To reward success*To incentivise the creatives at the heart of the film industry in order to better connect their films to audiences. *To nurture the creative talent more effectively and help build careers for the benefit of the industry and UK audiences.*To ensure a percentage share of revenues generated by a film’s success with audiences is accessible by the key creatives – the director, writer and producer – as fair reward for the successful generation and exploitation of their intellectual property. *To welcome the commitment by the trade bodies WGGB, DUK and PACT to work together on new contracts to ensure these revenues are shared fairly.

Television is still the single most important platform for film consumption in the UK, judged by the yardstick of viewer numbers.

*In 2010 there were 3.7 billion viewings of feature films across all television platforms, which is over 20 times the number of cinema admissions.

*On average, television accounts for 80% of the total films watched all together.

*This represents approximately 64 film viewings on television per person per year, compared with 2.9 cinema attendances.

For example, the most popular film on terrestrial television in 2010 was Shrek the Third, which attracted 7.8 million viewers to its premiere on BBC1.

Films deliver substantial economic value to broadcasters, estimated to have been £1.2billion in 2010, and still offer a way of generating large audiences for both free-to-air and pay television.

Because it is the primary means by which films are delivered to audiences, television plays a crucial role in engaging domestic audiences in locally produced films as well as those from Hollywood, and can also play a key role in the economic viability of the film value chain.

This remains true despite the creation of new platforms such as video-on-demand, which as yet attract relatively small numbers of viewers and correspondingly generate relatively small revenues. By contrast, the five main Public Service Broadcasters (PSBs) still commanded 73% of all viewing hours in the UK in 2010, despite the rise of multi-channel television.

“Deep-rooted structural constraints – such as the unusual economic properties of cultural products, the operations of their marketplaces, and the power of scale industries – can restrict the production and distribution of locally produced films and obstruct the establishment of domestic film industries.”

Some countries have used legislation to oblige TV broadcasters to invest in feature films. In France, broadcasters have long been required by law to invest directly a percentage of their annual revenues in film, resulting in an investment totalling over £420million in French film in 2010.

In the UK, the level of engagement in the film sector by broadcasters varies greatly. The BBC and Channel 4 show film across their primary channels and other free-to-air digital channels.

Channel 4 also has a dedicated free-to-air film channel, Film4, on which British, continental European and other non-American films comprise around 40% of the schedule.

‘Sky’ operates a suite of dedicated pay-TV movie channels, grouped by genre. More specialised films are also shown on its ‘Sky Arts channel’. ITV and Channel 5 show film on their primary channels and their other free-to-air digital channels.

THE PANEL RECOGNISES

*Broadcasters are facing economic challenges due to increased competition from other platforms driven by technological change.

*It is possible that with the decline in DVD, and the proliferation of catch-up services – many of which are operated by television companies – the viewing of films through media controlled by broadcasters, will increase.

*Some of the value which was traditionally captured by retailers selling or renting DVD’s, may now be re-captured by platforms operated by broadcasters.

“It is our conclusion that evidence shows television broadcasters are a critical element of the success of local film industries in other countries. It is also clear

that the variation in levels of contribution by UK broadcasters is a clear obstacle in creating a more

successful British industry.”

Given that the majority of people watch most of the films they see on television, an increased commitment to screening British films would also have an important impact on the vitality of cultural life in the UK.

Similarly, the broadcasters could be a powerful force for making available information and knowledge about the breadth of film available – through increased programming about film, online content and mobile ‘apps’.

It is important to recognise that each broadcaster is different, and could contribute to UK film differently, going with the grain of their individual histories, cultures and business models. A ‘one size fits all’ approach may not be appropriate.

“We also recognise that there is a long history of failure to connect policies for the film and television sectors. We want public policy to encourage the two sectors to engage productively in ways which could

be mutually advantageous in a digital era.For example, by working together, the sectors may be able to identify shared opportunities across the

value chain.”

REVIEW AIMS

*To ensure that all major broadcasters engage with and support British film in a significant way on an ongoing basis.

*To show a good proportion of British films as part of the overall mix on their TV channels.

*To ensure they recommend that the Government initiate immediate discussions with each of the major broadcasters – BBC, ITV, Channel4, Channel5 and ‘Sky’

BBCThe review welcomes the significant £12million per annum investment made in UK film by the BBC through its specialist production business unit BBC films.

They also appreciate the BBC’s promotion of cinema and films, and the encouragement to build up independent film companies.

Recent UK films as a percentage of total films broadcast shows a decrease in recent years from BBC1, but an increase on BBC2.2008 2009 2010

BBC1 14.2 12.7 10.0

BBC2 8.6 9.5 13.7

How can the BBC help improve the UK film industry in the future?

*They should feature more films on BBC1 as this is more widely accessible as a main channel. This is consistent with research by BBC films that show “respondents unanimously agree” the BBC should spend the licence fee buying and making British Films.

*The BBC could play a very significant role in championing British Film. For example, by revisiting a new BBC channel strategy exploring synergies between such strategies and companies such as the Digital Space Network. http://www.bbc.co.uk/blogs/bbcinternet/2011/10/digital_public_space_idea.html

*They also want to see the investment safeguarded and possibly increased.

ITV*60% of the top movies on TV in 2010 were screened on ITV1. In addition, 80% of the top 10 films on free-to-air digital multi-channel TV in 2010 were screened in ITV2.

2008 2009 2010

ITV 6.3 8.1 10.0

*ITV had particular success in investing in British films such as The Queen. These show that ITV has a especially strong role in promoting UK film. *Recent UK films as

percentage of total films broadcast show an increase over recent years, however still consistently remain low percentages.

How can Channel4 help improve the UK film industry in the future?*Safeguard investment, and grown if possible, welcoming the introduction in the Digital Economy Act of obligation for Channel4 to invest an screen a diverse range of film. *They should recognise the important role of Film4 in talent development and the quality and range of film output and their cinema promotion.*They make British films available as Channel4 is a public service broadcaster.FACTS50/59 foreign language films were shown on terrestrial television in 2010.

There were 96 British films shown on Channel4 in 2010, but only 32 were recent British films.Recent UK films as a percentage of total films broadcast show a highly low percentage that dropped in 2009, but was increased slightly in 2010. It has been consistently low and therefore this issue needs to be addressed.

2008 2009 2010

Channel4 6.8 5.9 6.1

Channel4The review recognises Channel4’s significant on-going investment in UK film through its specialist production arm, Film4. And in particular, welcomes the increase of Film4’s budget to £15million a year for five years from 2011.

SkyThe review welcomes the £2billion investment in content every year, including several hundred million pounds in film rights from Hollywood.

They plan to increase their exclusive high quality and original content for its platforms by raising their budget for this to £600m by 2015. They also are innovating in creating a global hub for 3D production.

This expansion allows the UK film industry to grow, meaning even the most modest of changes would have affect. This could be increased even more, by utilising its 3D expertise and building on its experience in family films.

The UK Film Acquisition Market

In 2010, the number of recent British films broadcast on terrestrial television was 160; only 7.7% of the total number of films broadcast. This shows a very small share for British film, and the review suggests this should be addressed.

Online services – future-proofing UK film policyThe Review recognises that broadcasting is in a period of dynamic change and that online services (such as Apple, LoveFilm and Netflix) are becoming a significant part of the UK’s audiovisual sector and film market. As these services gain scale, they should be expected to play a role in supporting British film just as the panel argues that broadcasters are expected to do.